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Assessing Italy’s Reform Challenges: What Do Growth Accounting and Structural Indicators Say?

Author

Listed:
  • Lorenzo Codogno

    (Italian Ministry of Economy and Finance, Rome)

  • Francesco Felici

    (Italian Ministry of Economy and Finance, Rome)

Abstract

Italy's overall GDP growth has been dismal in recent years and this poor performance has been compounded by a declining trend in productivity growth. This paper looks into growth accounting and structural indicators and analyses Italy's performance against other European countries. We look at the evidence provided by newly available information from the Lisbon Assessment Framework (LAF). We investigate whether this new evidence is supported by data from other sources and provides fresh insight into Italy's reform process. The main message from the analysis appears to be that Italy's GDP growth significantly underperformed that of the EU15 in 2001-2007 notwithstanding progress on reforms.

Suggested Citation

  • Lorenzo Codogno & Francesco Felici, 2008. "Assessing Italy’s Reform Challenges: What Do Growth Accounting and Structural Indicators Say?," Rivista di Politica Economica, SIPI Spa, vol. 98(5), pages 43-118, September.
    • Handle: RePEc:rpo:ripoec:v:98:y:2008:i:5:p:43-118
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    More about this item

    Keywords

    productivity; economic growth and aggregate productivity; Italy;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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